Minn. House panel hears that family child care providers are leaving amid licensing, funding problems

The Minnesota House Children and Families Committee heard extended testimony about a statewide shortage of family child care and what providers called burdensome licensing and funding practices that are driving programs to close.

Cindy Cunningham, a Saint Paul family child care provider and public policy chair for a statewide family child care association, told the committee “The state is investing high dollars to support an increased childcare. Yet family childcare providers continue to decline. The investments aren't working. There needs to be a change. As many have stated, we are in a crisis situation.” She and other witnesses described problems that include federal food-program tiering that reduces reimbursements for many home-based providers, grant programs that require 100% upfront spending before reimbursement, and inconsistent or poorly communicated licensing guidance from the Minnesota Department of Human Services (DHS).

The testimony outlined specific financial and administrative barriers affecting home-based providers. Cunningham said providers often cannot access the higher federal food reimbursement tier because commercial or special licenses in some communities do not qualify for the family child care food program, leaving “that many more children going without financial…